By HENRY MEIER Staff Reporter
Beverly Hills-based private equity firm Monogram Capital Partners announced the close of its newest fund last month, a $152 million pool raised from a mix of endowments, foundations, family offices and fund of funds.
Monogram invests in early-stage, small to mid-sized companies that make and market branded goods at retail, or retailers themselves. It was co-founded in 2015 by former Leonard Green & Associates Vice President Oliver Nordlinger and former Golden Gate Capital Vice President Jared Stein.
Monogram takes both controlling and minority equity stakes in companies; typical investments are between $5 million and $30 million.
Nordlinger and Stein said being headquartered in Los Angeles gives Monogram an edge over some of its competitors because it’s home to a significant pool of talent in the world or branded goods.
“Part of the reason we set up shop in L.A. is there is a ton of activity on the consumer sector,” Nordlinger said. “It’s a huge breeding ground for innovative brands.”
Los Angeles also offers more room to work, according to Stein.
“There are fewer consumer brand-focused private equity shops in L.A. as opposed to San Francisco or New York or Boston,” he said. “We feel like it gives us an edge being here and having all these companies in our backyard.”
So far Monogram has made 14 investments in nine companies, with the last three coming out of the new $152 million fund. Before that the firm was raising funds for deals on an individual basis.
The firm’s most recent deal was a growth equity investment in Seattle-based yogurt company Ellenos. The brand’s footprint is concentrated in the Pacific Northwest currently, but the Monogram investment is intended to help widen its distribution.
The new fund also allows Monogram to dedicate more resources to bringing on advisors and specialists to help its portfolio companies grow, according to Nordlinger and Stein.
The company’s Southern California investments include San Bernardino-based jerky maker Country Archer and Culver City-based pet retailer and service provider Healthy Spot.
Downtown-based Latham & Watkins acted as legal advisor to Monogram on the new fund, and Acalyx Advisors Inc. of New York served as placement advisor.
Powered Up
Century City-based Saban Brands, creators of the live-action Power Rangers children’s show, agreed to sell the brand to Hasbro Inc. for $522 million, the companies announced May 1.
The Pawtuckett, R.I. toymaker will pay Saban $229.75 million in cash and issue $270 million worth of common stock for the Power Rangers brand and other entertainment properties. Hasbro also picked up My Pet Monster, Popples, Julius Jr, Treehouse Detectives and Luna Petunia from Saban Brands.
Launched in 1993 as the “Mighty Morphin Power Rangers” live-action TV show, the franchise was created by Haim Saban, chief executive of Saban Capital Group Inc.
Saban Brands was formed in 2010 as an affiliate of Saban Capital Group, which was founded by Saban in 2001. Saban was ranked No. 14 last year in the Business Journal’s list of wealthiest Angelenos with a net worth of $4.6 billion.
“25 years after launching Power
Rangers, I believe the future for this brand has never been greater,” Saban said in a statement.
The acquisition is expected to close in the second quarter of 2018.
Healthy Buy
Caltius Equity Partners has made a “significant investment” in Health Payment Systems Inc., a health care billing and payments company based in Wisconsin, company executives announced May 2.
The private equity firm based in West Los Angeles declined to disclose terms of the deal.
Caltius Equity, founded in 1999, buys and builds lower-middle market companies in business services, industrial services, IT and consumer services.
The firm invests between $10 million to $30 million per transaction for controlling or substantial minority ownership positions in businesses generating earnings before interest, taxes, depreciation, and amortization from $4 million to $12 million.
Health Payment Systems, based in Milwaukee, processes billing and payments for health care providers, insurance companies and employers.
Have a deal tip? Henry Meier can be reached at [email protected] or at (323) 556-8321.
